( 於百慕達註冊成立之有限公司） (Stock Code 股份代號：491) NOTIFICATION LETTER 書面通知 Dear Non-registered Shareholder (Note 1) , 16 March 2026 The following document(s) of Emperor Culture Group Limited ("Company") has/have been prepared in English and Chinese and is/are available on the websites of the Company at https://www.EmpCulture.com and The Stock Exchange of Hong Kong Limited at https://www.hkexnews.hk (collectively "Websites"): 2025/2026 Interim Report If you have provided an email address via Hong Kong Securities Cleari ...

NOTIFICATION LETTER 書面通知 Dear Registered Shareholder(s), 16 March 2026 ( 於百慕達註冊成立之有限公司） (Stock Code 股份代號：491) The following document(s) of Emperor Culture Group Limited ("Company") has/have been prepared in English and Chinese and is/are available on the websites of the Company at https://www.EmpCulture.com and The Stock Exchange of Hong Kong Limited at https://www.hkexnews.hk (collectively "Websites"): 2025/2026 Interim Report If you have not provided us with an email address but now would like to receive ...

Financial Projections - Revenue for 2025 is projected to be $266.4 million, representing a 9.6% increase from $243.1 million in 2024[4] - Operating income for 2025 is expected to reach $215.5 million, up 9.7% from $196.5 million in 2024[4] - Net income for 2025 is forecasted at $50.8 million, a 9.0% increase compared to $46.6 million in 2024[4] - The company expects to achieve a total revenue of $585,202 million by the end of 2025, with a guidance of $51,700 million for Q1 2024, up from $51,100 million in Q1 2023[10] - For the fiscal year ending December 31, 2025, the company projects total revenue of $912.843 million, with a net loss of $(2.350145) billion[22] - The company anticipates continued growth, projecting revenues to reach $300,000 million by 2026, indicating a growth target of around 12.6%[31] - Total revenue for 2025 is projected to be $6.343 billion, up from $4.772 billion in 2024, representing a growth of approximately 33%[43] - The company provided guidance for the next fiscal year, projecting revenues between $27,161 million and $30,407 million, reflecting a potential growth of 10% to 12%[57] User Growth and Engagement - The user base is expected to grow significantly, with projections indicating an increase to 1.12 billion users by the end of 2025, up from 1.07 billion in 2024[8] - The company reported a significant increase in user data, with a total of 156,178 million users in 2025, compared to 147,226 million users in 2024, reflecting a growth of approximately 6.5%[13] - User data shows an increase in active users to 1,233 million in 2025, up from 1,077 million in 2024, reflecting a growth of 14.5%[43] - The company is focusing on market expansion strategies, including new product launches and technological advancements, to drive future growth[10] - Future guidance indicates a strong focus on enhancing user engagement and retention strategies, aiming for a 25.1% increase in user engagement metrics by 2025[6] - The company is targeting an increase in user engagement by 15,750,000, which is a 0.29% growth[73] Operational Efficiency and Cost Management - The company reported a decrease in operating expenses, which were $(146,460) million in 2025, down from $(152,579) million in 2024, showing a reduction of approximately 4.1%[13] - The company is committed to enhancing its operational efficiency to improve profitability margins in the coming fiscal years[10] - The company has implemented new strategies to improve operational efficiency, aiming to reduce costs by 10% over the next fiscal year[39] - The company aims to improve operational efficiency, targeting a reduction in costs associated with user acquisition and retention strategies[22] Research and Development - Research and development investments are set to increase by 20% in 2025, focusing on innovative technologies and user experience improvements[6] - The company is investing in research and development for new technologies, aiming to innovate and improve product efficiency[10] - Research and development expenses increased to $37 million in 2025, up from $45 million in 2024, reflecting a commitment to innovation[38] - New product development includes a significant investment in technology, with $600,000,000 allocated for R&D, achieving a 75.00% efficiency rate[73] Mergers and Acquisitions - The company is exploring potential mergers and acquisitions to bolster its market position and expand its service offerings[6] - The company has indicated plans for mergers and acquisitions to enhance its market position and product offerings in the upcoming years[10] - The company is exploring potential mergers and acquisitions to enhance its market position and drive growth[22] - A merger with Alto Trust Limited is expected to enhance market share and operational efficiency, contributing to a projected revenue increase of 2,371,313,094[75] Market Expansion - The company plans to expand its market presence with new product launches and technological advancements, aiming for a revenue target of $21.29 billion in 2025[47] - Market expansion strategies include entering new geographical regions, which are projected to contribute an additional $50,000 million in revenue by 2026[34] - The company is focusing on expanding its market presence and enhancing user engagement through new product development and technology advancements[79] - The company is focusing on market expansion, particularly in the Asia-Pacific region, which is expected to drive future growth[59] Financial Performance - The company reported a significant reduction in losses, with a net loss of $47.6 million in 2025, improving by 16.2% from a loss of $56.8 million in 2024[4] - The net loss for the fiscal year 2025 was $(25,761) million, which is a slight improvement from the net loss of $(26,904) million in 2024[38] - The company reported a net loss of $(127.167) million for the fiscal year ending December 31, 2024, with total revenue of $912.843 million[22] - The company reported a net loss of $(1,435 million) for the year ending December 31, 2025, consistent with the previous year[57] Market Outlook - The overall market outlook remains positive, with analysts projecting a 15% growth in the industry, which the company aims to capitalize on through strategic initiatives[40] - The overall performance indicates a strong upward trend, with a total revenue growth forecast of 336 million by the end of 2025[75] - Future outlook remains positive, with expectations of continued growth in user base and revenue, driven by innovative product offerings and strategic partnerships[75]

FF301 | 1. 股份分類 | 普通股 | 股份類別 | 不適用 | | 於香港聯交所上市 (註1) | | 是 | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | 證券代號 (如上市) | 00491 | 說明 | | | | | | | | | | | 法定/註冊股份數目 | | 面值 | | 法定/註冊股本 | | | 上月底結存 | | | 50,000,000,000 | HKD | | 0.01 HKD | | 500,000,000 | | 增加 / 減少 (-) | | | | 0 | | HKD | | 0 | | 本月底結存 | | | 50,000,000,000 | HKD | | 0.01 HKD | | 500,000,000 | 本月底法定/註冊股本總額： HKD 500,000,000 第 1 頁 共 10 頁 v 1.2.0 股份發行人及根據《上市規則》第十九B章上市的香港預託證券發行人的證券變動月報表 截至月份: 2026年2月28日 狀態: 新提交 致：香港交易及結算所有限公司 公司名稱: Emp ...

Core Viewpoint - Emperor Culture Industry (00491) reported a total revenue of approximately HKD 266 million for the six months ending December 31, 2025, representing a year-on-year increase of 9.6%. The net loss narrowed to HKD 47.615 million, a reduction of 16.2% compared to the previous year. The improvement in loss was attributed to increased total revenue and effective cost control measures [1]. Financial Performance - Total revenue reached approximately HKD 266 million, marking a 9.6% year-on-year growth [1]. - The net loss was reported at HKD 47.615 million, which is a 16.2% decrease from the previous year's loss [1]. - The narrowing of losses is primarily due to the increase in total revenue and the implementation of effective cost control measures [1].

Group 1 - The core viewpoint of the article is that Emperor Culture Industry (00491) reported a total revenue of approximately HKD 266 million for the six months ending December 31, 2025, representing a year-on-year growth of 9.6% [1] - The company experienced a net loss of HKD 47.615 million, which is a reduction of 16.2% compared to the previous year [1] - The narrowing of losses is attributed to the increase in total revenue and effective cost control measures implemented by the company [1]

Core Viewpoint - The company, Emperor Culture Industry (00491.HK), reported a 9.6% increase in total revenue for the fiscal year 2025/2026, reaching HKD 266.4 million, despite challenges in market development due to weak consumer sentiment and a lack of blockbuster films [1] Revenue Summary - Total revenue increased to HKD 266.4 million from HKD 243.1 million in 2024, marking a growth of 9.6% [1] - Box office revenue accounted for HKD 215.5 million, up from HKD 196.5 million in 2024, representing 80.9% of total revenue [1] - Revenue from the mainland China market rose by 25.1% to HKD 112.7 million, contributing 42.3% to total revenue, compared to 37.0% in 2024 [1] - Revenue from the Hong Kong market remained stable at HKD 140.1 million, making up 52.6% of total revenue, slightly down from 58.0% in 2024 [1] Loss Summary - The company's net loss narrowed to HKD 47.6 million from HKD 56.8 million in 2024, indicating improved financial performance [1] - Basic loss per share was reported at HKD 0.015, an improvement from HKD 0.018 in 2024 [1]

Financial Performance - Total revenue increased by 9.6% to HKD 266,377,000 for the six months ended December 31, 2025, compared to HKD 243,147,000 in 2024[5] - Box office revenue rose by 9.7% to HKD 215,541,000, accounting for 80.9% of total revenue[6] - Net loss narrowed by 16.2% to HKD 47,615,000 from HKD 56,823,000 in the previous year[5] - Revenue from the mainland China market surged by 25.1% to HKD 112,700,000, representing 42.3% of total revenue[6] - The company reported a net loss attributable to shareholders of HKD 47,615,000 for the six months ended December 31, 2025, compared to a loss of HKD 56,823,000 in the same period of 2024, representing a 16.5% improvement year-over-year[19] - Total comprehensive loss attributable to shareholders was HKD 48,023,000 for the same period, slightly down from HKD 56,746,000 in 2024[19] - The adjusted loss before tax for the cinema operations was HKD 25,761,000 for the same period[23] - The group reported a loss before tax of HKD 56,823,000 for the six months ended December 31, 2024, compared to a loss of HKD 47,615,000 for the same period in 2025, indicating a reduction in losses[38] Cash and Liquidity - Cash and cash equivalents stood at HKD 65,700,000 as of December 31, 2025, up from HKD 49,800,000 on June 30, 2025[10] - The company's cash and cash equivalents increased to HKD 65,723,000 as of December 31, 2025, up from HKD 49,821,000 as of June 30, 2025, indicating improved liquidity[19] - Current liabilities net amount stood at HKD 232,427,000, compared to HKD 223,613,000 as of June 30, 2025, reflecting a slight increase in short-term obligations[19] - The total liabilities net amount was HKD 1,479,320,000 as of December 31, 2025, compared to HKD 1,431,298,000 as of June 30, 2025, indicating an increase in overall debt[19] - The company has secured a long-term loan financing of HKD 1,200,000,000 from a related party, with HKD 1,051,000,000 drawn down as of December 31, 2025[19] Operational Highlights - The group operates 24 cinemas with a total of 172 screening rooms and approximately 25,000 seats across mainland China, Hong Kong, and Macau[7] - The group plans to open its third cinema in Beijing by 2027, targeting a prime location in Taikoo Li[9] - The company generated revenue of HKD 266,377,000 from external customers in its cinema operations for the six months ended December 31, 2025[23] - Revenue from cinema operations for the six months ended December 31, 2025, was HKD 266,377,000, an increase of 9.4% compared to HKD 243,147,000 for the same period in 2024[28] - Box office revenue increased to HKD 215,541,000 in 2025 from HKD 196,529,000 in 2024, representing a growth of 9.7%[29] Employee and Operational Costs - Employee costs totaled HKD 51,700,000, slightly up from HKD 51,100,000 in the previous year, with a workforce of 585 employees[12] - The depreciation of property, plant, and equipment was HKD 21,290,000 for the six months ended December 31, 2025, down from HKD 23,545,000 in 2024[34] Governance and Compliance - The board has decided not to declare any interim dividend for this period, consistent with the previous year[13] - The group did not declare any interim dividends for the period, consistent with the previous year[37] - The average number of ordinary shares issued during the period was approximately 3,213,341,000 shares, unchanged from 2024[38] - The company's interim financial statements have not been reviewed or audited by the company's auditor, but have been reviewed by the audit committee consisting of three independent non-executive directors[44] - The company has complied with all provisions of the corporate governance code as set out in Appendix C1 of the listing rules during the period[45] - No repurchase, sale, or redemption of the company's listed securities occurred during the period[47] - The interim results announcement has been published on the Hong Kong Stock Exchange website and the company's website[48] Government Support - The group received government subsidies of HKD 1,425,000 in 2025, compared to HKD 875,000 in 2024, reflecting a 62.9% increase[33] Trade and Receivables - Total trade receivables as of December 31, 2025, were HKD 27,161,000, down from HKD 30,407,000 as of June 30, 2025[40] - Trade payables decreased to HKD 48,077,000 as of December 31, 2025, from HKD 59,655,000 as of June 30, 2025[43] - Interest income from bank deposits decreased to HKD 37,000 in 2025 from HKD 45,000 in 2024[33]

Group 1 - Hong Kong film stocks experienced significant declines, with major drops including DaMai Entertainment down 9%, Maoyan Entertainment down 7.5%, and Huanxi Media down over 5% [1] - According to a report by CICC, as of February 23, 2026, the effective box office for the first six days of the Spring Festival period was 5.077 billion RMB, a decrease of 38.7% compared to the same period in 2025 [1] - The expected box office for the period may fall below the previously anticipated range of 6.5 to 8.5 billion RMB, primarily due to a high base and a lack of leading films [1] Group 2 - The leading film during this period is "Fast and Furious 3," followed by "Silent Awakening" in second place [1] - Upcoming domestic films such as "Genius Game" and "A Fortune for a Fortune" have been scheduled, along with imported films like "Wuthering Heights" and "Rescue Plan" [1] - Other domestic films in reserve include "Wild Forbidden Land," "Mind Flower," "Catch the Spy," and "Penghu Sea Battle," while imported films include "Odyssey" and "Avengers 5" [1]

Core Viewpoint - Emperor Culture Industry (00491.HK) will hold a board meeting on February 27, 2026, to approve the publication of the interim results announcement for the six months ending December 31, 2025, and to consider the distribution of an interim dividend [1] Group 1 - The board meeting is scheduled for February 27, 2026 [1] - The meeting will focus on approving the interim results for the six months ending December 31, 2025 [1] - The company will also consider the possibility of declaring an interim dividend [1]